DivX is shuttering its Stage6 video sharing portal, admitting it was chewing resources it does not have. DivX launched the service to showcase its media player technology. It attracted nearly a million users but without revenue to pay for the high cost of quality video delivery it was doomed.
In the end, DivX could not even find a buyer for the portal. According to DivX: "So why are we shutting the service down? Well, the short answer is that the continued operation of Stage6 is a very expensive enterprise that requires an enormous amount of attention and resources that we are not in a position to continue to provide."
It is another case where the superior technology does not necessarily win. Market titan YouTube may have inferior quality to almost all the would-be portals, but is the accepted go-to site for user-generated content. And the imminent arrival of Adobe's next-generation-player software is likely to narrow the quality gap significantly. This will further challenge the various proprietary providers, all of whom are paying a high price to serve bandwidth chewing video with little to show for it other than invoices from their CDN provider.
For more;
- DivX closes its Stage6 portal Feb. 28 Statement and Blog
- DivX finally shuts Stage6 video portal Article
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